The MPEI Board of Directors struggled long and hard over the dilemma of equity in electric rates. MPEI takes any rate increase very seriously. MPEI's power supplier - Tri-State Generation and Transmission Association - increased wholesale electricity costs by 13.8 percent in 2005, 4 percent in 2006, 11.8 percent in 2007 and 10 percent in 2008. As a not-for-profit cooperative, MPEI simply could not afford to absorb the increase and was forced to pass the increase along to members.

MPEI took the opportunity to ensure that all rate classes were paying their fair share. MPEI contracted with Fort Collins-based Electrical System Consultants to perform a cost-of-service study for MPEI's consumers. These independent specialists determined that it costs MPEI approximately $23 (in 2003) just to maintain the transformers, wires and metering to each house. That amount does not include the sale of any electricity. It was this information that helped the board of directors decide upon the $25 service charge.

This increase was necessary to assure that MPEI remains open for business and that your lights will be on whenever you stay at your home. MPEI wants to maintain the same level of reliable, safe electric service that you have come to expect from us.